Mexico considering ESBR import duties

Negromex's petition for dumping relief was not motivated by the U.S. investigation, according to the company.

"Both investigations are completely independent," a company spokeswoman said. "We have been tracing imports that are traded at less than fair value for several years now in Mexico, especially after the expiration of dumping duties that Mexico had against Brazil."

There have been ESBR dumping investigations in India and Brazil as well as the U.S., the Negromex spokeswoman said.

"The only difference between all these cases is that the ESBR trade changes in the U.S. were a result in production disruptions and changes in ownership that caused uncertainty in the market, and this we think was reflected in the split vote of the ITC," she said.

Negromax is part of Dynasol Group, a joint venture involving Spain's Repsol and Mexico's KUO Group.

The Negromex spokeswoman referred to the bankruptcy of East West Copolymer L.L.C. at the end of March 2017, seven months after it joined Lion Elastomers L.L.C. in petitioning the ITC for ESBR dumping relief. Lion purchased the 74-year-old East West plant in Baton Rouge, but did not reopen it

On July 11, the U.S. Department of Commerce assigned a final dumping margin of 19.52 percent against Mexican ESBR imports. The other countries in the investigation were assigned antidumping duties as follows:

• Brazil, 19.61 percent;
• Korea, 9.66 percent for LG Chem Ltd., 44.3 percent for Daewoo International Corp. and Kumho Petrochemical Co. Ltd.; and
• Poland, 25.43 percent.

U.S. Customs and Border Protection already has begun collecting cash deposits in these amounts from ESBR importers from the four countries.

On Aug. 3, the ITC voted 2-2 in a final determination of material injury to the U.S. ESBR industry caused by import sales of less than fair value. A tie vote in the ITC always signifies an affirmative vote.

ExxonMobil Corp. confirmed in August it had purchased the 94-acre East West facility, which is adjacent to an ExxonMobil Chemical plant in Baton Rouge. The reported purchase price was $5.6 million, the same price Lion Elastomers paid for the site.

While ExxonMobil has no immediate plans for reopening the plant, the additional acreage provides unique synergies with ExxonMobil's integrated complex and helps position the company for potential future investments, an ExxonMobil spokesman said.